Stocks in ‘pause mode’ pending Powell hearing


PARIS (Reuters) – The main European stock markets are moving on a stable note shortly after the opening on Tuesday before a highly anticipated intervention by the Chairman of the Federal Reserve (Fed), Jerome Powell, likely to orient investors on the monetary policy of the States. -United.

In Paris, the CAC 40 gained 0.08% to 7,378.78 points at 08:42 GMT. In London, the FTSE 100 takes 0.08% and in Frankfurt, the Dax advances by 0.15%.

The EuroStoxx 50 index was stable, the FTSEurofirst 300 gained 0.06% and the Stoxx 600 0.16%.

During his last press conference at the beginning of February, Jerome Powell declared that a “process of disinflation” had begun.

Market players want to know if the Fed boss remains confident about price developments as the latest statistics showed a reacceleration in inflation in January.

They could get some answers during the hearing of Jerome Powell from 3:00 p.m. GMT by the US Senate Banking Committee, before a similar hearing before the House of Representatives on Wednesday.

“Given the likelihood that the January numbers (on inflation) are an anomaly rather than a trend, I think it would probably be wiser for Jerome Powell to stick to his previous speech, otherwise he risks scare the markets,” said Craig Erlam, senior analyst at OANDA.

“But if the committee is really considering a half-point rate hike this month, (his hearing) would be a good opportunity to prepare the market for that idea,” he added.

On the stock market, the luxury groups Kering (-0.52%) and LVMH (-0.33%) fell slightly after the sharper than expected drop in imports last month in China, a key market for the sector.

The CSI 300, China’s benchmark index, closed down 1.5% and the SSE in Shanghai lost 1.1%.

Brewer Carlsberg lost 3.07% in Copenhagen after announcing that its chief executive Cees’t Hart would step down at the end of the third quarter at the latest.

Red lantern of the Stoxx 600, HelloFresh fell by 4.97% after a forecast of Ebitda 2023 worse than expected.

Henkel (-3.01%) is also in the red after annual forecasts considered disappointing while the online fashion group Zalando wins 4.68% after saying it is focusing on improving its profitability this year.

(Laetitia Volga, edited by Blandine Hénault)

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